Issue - meetings

The presentation will address the following topic:

‘Since the proposals for an East Kent Merger have now ended, what plans does TDC have to address future budgetary concerns?’

Councillor Wells, Leader of Council made a presentation in response to a question raised by the Panel. In his presentation Councillor Wells made the following points:

• Council had put in place a medium term financial strategy (MTFS) that reflected that there would not be  a merger of the East Kent authorities;
• This was based on a four year government financial settlement;
• The financial strategy was aimed at making the required immediate and medium term savings;
• The merger would have made efficiency savings of about £5-7million per year across the four participating councils;
• There would have been one-off £10million transaction costs to facilitate the changes;
• The 2017/21 council MTFS was produced on the basis of there being no merger of the four East Kent Councils;
• The 2018/22 was being prepared as per current arrangement (i.e TDC working on its own to identify revenue sources to build the budget);
• There were still significant budgetary challenges;
• There were also some uncertainties relating to the local government support grants leading up to 2020 where there would be no revenue support grant for councils;

• There was no Local Government Finance Bill in this year’s Queen Speech;
• Government funding was reducing every year and business rates may fill-in the budget gaps but there is no firm decision on that issue as there some pilot schemes still being tested;
• In 2012/13 TDC had just over £21million in the budget compared to £19million in 2016/17 and £16.7million in 2017/18;
• The Council received revenue support grant in 2012/13 of £9.6million and by 2021, Council would need to have in place a self-financing budget (i.e all £16.5million) as the Council would receive no revenue support grant
• The Council had received notice of changes to the structure of the New Homes Bonus six weeks’ prior to the Council’s budget meeting, which has resulted in  a shortfall of £1million;
• Council made some bad decisions in the past;
• The Peer review gave credit to TDC for operating council affairs in business like way;
• The Council was exploring a number of options to create savings, including sharing offices with external agencies like is the current situation with Thanet CCG;
• Shire and District Councils had been the worst hit by a decrease in government revenue support grants.

In response to the presentation Members raised the following points and questions:

• Was there any opportunity for merging with other agencies as was suggested in a previous approach called ‘Common Places/Total Place concept’?
• There was a urgency for TDC and other local councils in the area to make savings in short to medium term to reduce overheads and work with sustainable council budgets;
• Parish/Town Councils would lose about 33% per year as a result of the reduced government spending;
• What were the plans for raising the £16.5million in 2021?
• Would it be correct to suggest that the Council may be forced to reduce some of the services it currently provides?
• A Conference in Birmingham looked at a paper on Enterprising Councils, it was interesting to note that Sevenoaks  ...  view the full minutes text for item 135